Feeling US heat, Chinese companies offer to discount India bill for electronics parts - The Economic Times

Impact of US-China Tariffs

The US-China tariff war is causing Chinese electronics component manufacturers to reduce prices by up to 5% for Indian companies. This is due to decreased US demand and oversupply in China. This significant concession, given the low margins in this segment, could benefit Indian manufacturers and potentially translate into lower prices for consumers.

Indian Market Dynamics

India currently imports a significant portion (three-fourths) of its electronics components from China. However, initiatives like production-linked incentives, quality control orders, and increased import duties are aiming to boost domestic production and reduce reliance on Chinese imports. India aims to grow its components and sub-assembly manufacturing to $145-155 billion by 2030.

Industry Perspectives

Industry experts highlight the impact on various sectors:

• Appliances: Godrej anticipates price renegotiations due to slowing US export orders.
• Televisions: Super Plastronics confirms price negotiations, with a possibility of discounts being passed on to consumers.
• Smartphones: Smartphone component prices are expected to decline due to oversupply, with brands potentially passing some of the savings onto consumers depending on their inventory position.

The article underscores the complex interplay between global trade tensions, supply chain dynamics, and national economic strategies, focusing on the case of India and its electronics industry.